Can anyone help me on this Insurance question?
Question: Ashely is involved in a motor vehicle accident. She is sued by Spike, the driver of the other vehicle. Ashely calls her insurer and tells them to handle it for her. Later, she is asked to give some information to the insurer regarding the incident and to give a deposition in litigation. She tells the insurer that she is too busy and that the insurer should simply handle the matter because that is the reason she has insurance; and that, furthermore, the insurer should not call her again regarding the accident. Is Ashely correct about her duties and why?
Best Answers: Can anyone help me on this Insurance question?
Ashley is in violation of her insurance contact (policy). Her company will respond by sending her a reservation of rights letter and then will deny coverage as long as she continues to be uncooperative. Here's why: 1. the law suit is against Ashley. Not her insurance company. That means, if the jury verdict exceeds the policy limit or the insurance denies coverage - Ashley will be held personally responsible for any damage/injuries she caused. 2. According to the standard auto policy - in the section under Duties After Loss- it specifically states that you have a duty to cooperate in the investigation and defense of the claim. Failure to do so can be grounds for the insurance company to deny coverage.
If you did not have a valid insurance policy at the time of the loss, then of course you cannot file a claim. If you currently have collision and comprehensive coverage, didn't your insurance company ask for a pre-inspection of your vehicle before they offered you coverage? If not, I would question the integrity of your insurance company. Sounds like some fly by night operation. Anyway, if you were not at fault for the accident, contact the other driver's insurance company. They will reimburse you for your damages and rental, up to the at-fault drivers policy limits.
Nope. Part of the responsibility of the insured is to participate in providing statements regarding the accident. She would likely be subpoenaed by the other driver's insurance company if she didn't show, then she is backed into a corner. She will not be offered a renewal on the policy, and other companies will find out why when she tries to shop around. Bottom line? She would be an idiot, and an uninsured idiot at that.
You can borrow another person's car and be protected under their insurance when you are not a resident within their home. If you are living with your dad, you must, at the very least be listed as a secondary (occasional) driver on his policy. you do not need your own policy though.
Ashley is going to be dropped, by her insurance co., like a hot potato. Yes, her insurance company is paid to handle litigation for her but she is required to provide all information they require regarding the accident and appear in court or give depositions if needed. If she refuses they may no longer be obligated to insure her. Being dropped by an insurer makes it extremely difficult to darn near impossible to obtain insurance from another company.
Whose car is this, yours, or your grandmother's?? GAP is a coverage when you owe more on the car than it is worth. It pays the difference between what regular car insurance pays, the actual cash value, and the payoff on the car. That difference is called the "gap". It does NOT cover any "negative equity" rolled in from a prior loan, or any financed taxes or registration fees. See, I don't know what the purchase price of your car is, but your car is WORTH about $11,000. You're payback value is almost $32,000. Yep, you'll be paying about THREE TIMES what that car is worth. That's a HUGE gap. Gap is NOT required by law. But if you total that car, while you owe more than it's worth (um, which might be four or five years), you'll still need to pay that loan off. She WAS asked. She must have initialed or signed something, before getting the gap coverage. Again, the source of confusion here, is who exactly owns the car. Sounds like it's her, and her loan, and her title, and probably her insurance. If she didn't add you as a driver, though, and you use the car regularly, then there could be a coverage issue if you get in an accident. You could end up having the whole claim denied - and making those payments for the next five years, with no car.
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